Features, Advantages & Disadvantages of Building Structure
Then, following yesterday, we will explain the structure of the building. Below is a list of the features of each structure and their advantages and disadvantages.
Advantages of W-Structure/Wooden construction
The most notable advantage of wooden properties is that they are cheap.
Construction costs for wooden properties are kept low, and they are built in a short construction period. Therefore, it is possible to construct high quality objects at low cost. It is a big advantage that the rent is often comparatively cheap compared to other structures. The advantage of wooden construction is that it is suitable for the climate of Japan. Trees have the effect of keeping moisture by releasing stored moisture into the air during winter when the air in the room is dry. It absorbs moisture in the air during the high humidity season such as the rainy season.
In addition, it has excellent breathability, so it matches the climate of Japan with four seasons and high humidity.
Disadvantages of W-Structure/Wooden construction
It is a pity that the wooden structure has the best air permeability, but the sound insulation is the lowest among all the structures. In many cases, the walls separating the rooms are thin.
The point that air conditioning is difficult to work is that it is easy to complain when living in a wooden property. Compared to steel frames, wooden properties are less airtight because they are less airtight than steel frames. If air conditioning is not effective, utility costs may increase.
Also, the wooden structure has low fire resistance. Due to the characteristics of wooden construction, a building fire will set fire quickly. However, there is also the aspect that "even if the surface is scorched, it will take some time to burn to the inside," and this does not mean that the entire apartment will collapse immediately if a fire occurs.
Advantages of RC-Structure/Reinforced concrete construction
Since the main material, concrete, is a non-combustible material, it has extremely high fire resistance. As a base for daily life, living in a room with excellent fire resistance will give you peace of mind. It also has a high durability because it has both compressive force and attractive force. There are many properties that can withstand an earthquake. Basically, the heavier the material, the higher the sound insulation capacity, so it is easy to imagine that concrete with an overwhelming weight has high sound insulation. Especially for those who want to put 5.1ch surround speakers in the room because they block the bass sound well, let's live in RC without hesitation. Due to the characteristics of pouring concrete, there is a high degree of freedom in shape, and there are also many design variations. This is because there is a high degree of freedom in design and you can live in a modern property.
Disadvantages of RC-Structure/Reinforced concrete construction
The bottleneck is that not only construction costs but also dismantling costs are high. In the case of rent, high rent is a disadvantage of RC construction. The rent is often set higher than the wooden and S structures.
Compared to the SRC structure described later, it is slightly weaker to shake because it does not contain steel frames. But you don't have to worry about the earthquake as much as the wooden and S structures.
Advantages of SRC-Structure/Reinforced steel frame concrete construction
SRC construction has the best earthquake resistance and fire resistance of all structures. It boasts top class fire resistance and durability. The weaknesses of S-Structure, which are "weak against heat" and "prone to rust", are overcome by wrapping it in concrete, and the weakness against shaking is covered with reinforcing bars and steel frames. It is also superior in strength and earthquake resistance compared to RC construction. Therefore, it is often used for construction of high-rise or super high-rise apartments with 10 or more stories. High seismic resistance can be secured even if the size of columns and beams is small
Disadvantages of SRC-Structure/Reinforced steel frame concrete construction
Construction costs are the highest and rent is the highest in the property structure. Although there is a sense of security against fires and earthquakes, delivery times are longer, construction costs are higher, and rent is more expensive than other construction structures.
Summary: Recommended property structure changes depending on what you emphasize
If you want to reduce the construction cost or if you want to use the traditional construction method, you can use W-Structure or S-Structure.
RC-Structure or SRC-Structure if emphasis is placed on earthquake resistance and fire resistance
You can't miss the function of the house. In terms of strength and durability as well as earthquake resistance and fire resistance, RC-Structure and SRC-Structure will be favored. In the past, it was generally recognized that seismic resistance was “SRC-Structure>RC-Structure”, but in recent years when technological progress has been remarkable, there is almost no difference for newly built properties.
RC-Structure and SRC-Structure are also advantageous for sound insulation. However, it is necessary to pay attention to the boundary wall.
Since concrete is cast into the RC and SRC structures, sound and vibration are less prone to sound insulation. However, similar to the above earthquake resistance, the functional difference between the two is not large.
So what should we look for in the property overview if we want to be particular about soundproofing? It will be the material and thickness of the wall.
Even if the building itself is made of RC or SRC-Structure, if the wall with the next room is thin, you can expect only a soundproofing effect. The wall between the dwellings is called a party wall, and its thickness and material greatly affect sound insulation. The condominium party wall is around 180 mm to 250 mm. With a thickness of around 200 mm, you can expect the same soundproofing effect as a condominium. It also depends on whether the wall material is only concrete blocks. For a simple way to check, please knock on the wall when you check the property by looking inside. Although it can not be said unequivocally, when it is made of concrete, it generally feels as if it is packed with contents. On the other hand, if it is hollow and separated only by plasterboard, there will be a loud sound. This will give you a good idea.
Choose a property with no regrets
Property structure with advantages and disadvantages. What matters is where you prioritize. You don't want to compromise because it's your new home. When you look at a new property from now on, let's look not only at the inside and the appearance, but also at the invisible structure.
What is the meaning and difference between RC, SRC, reinforcing steel and steel-frame?
The characters "RC" and "SRC" that are often seen in the "Structure column" in the property overview on the real estate site. When looking for real estate, do you pay attention to the structure of the property? In general, we tend to focus on the actual floor plan and equipment, but we would like to understand the structure firmly. This time, we will explain in detail the structure of the property, which greatly affects the living comfort.
Type of building structure
First of all, what kind of building structure is there? We picked up some representative examples.
● S-Structure…… Steel structure
● RC-Structure…… Reinforced concrete construction
● SRC-Structure…… Reinforced steel frame concrete construction
The alphabets such as RC and SRC represent the materials that make up the building.
W-Structure (henceforth wooden) is a property made of wood for the main structural parts. Many buildings have been made of wood to match the climate and natural features of Japan. It is still used in small apartments.
S-Structure/ Steel structure (hereinafter referred to as “S structure”) is a structure that uses steel frames for columns and beams. S stands for steel. We think that it is easy to understand if the wooden pillar is made of iron as it is. Although it is a bit of iron, it is characterized by using artificially increased strength.
It is important to note here that there are two types of S structure: heavy steel structure and lightweight steel structure. We think that this notation is often made on the building structure of rental properties.
Steel with a thickness of 6 mm or more is called "heavy steel structure", and steel with a thickness of less than 6 mm is called "light steel structure". The former is mainly used for building large-scale buildings such as buildings and high-rise condominiums, and the latter is lightweight. Steel frame construction is often used in ordinary houses and small stores.
RC-Structure/Reinforced concrete construction
RC-Structure is literally "reinforced concrete". Pillars, beams, floors and walls are mainly composed of reinforcing steel and concrete, and the concrete is poured and solidified in a formwork that is made up of reinforcing steel. The characteristic is that the two materials are combined to provide the strength necessary for condominium construction.
● Reinforcing bar: Strong against attractive force (pulling power), but weak against heat and easy to rust
●Concrete……Strong against heat, but weak against attractive force (pulling power)
The heat-sensitive rebar is covered with concrete to protect it from heat and prevent oxidation. On the other hand, concrete has resistance to "compression" that is pressed down from above, but "weak tensile strength" is a problem. This is reinforced with reinforcing steel, which has a strong attractive force. By successfully compensating for the disadvantages of both reinforcing steel and concrete, various advantages are created.
SRC-Structure/Reinforced steel frame concrete construction
The SRC structure is a property constructed by building steel bars around steel columns and driving in concrete. For large-scale properties such as large condominiums and buildings, the SRC construction method is often used. It can be said that the structure is more durable than the RC structure that does not use steel frames.
There are other structures as well, so we will touch on them.
Abbreviation for Reinforced Steel. This is a building structure in which the columns, walls, floors, and ceilings in the lower part of the building are made of RC-Structure, and the upper part is composed of a structure different from the lower part such as S-Structure. It is mainly used in the construction of low-mid-rise apartments.
The walls, floors, and ceiling are made of RC, and the characteristic is that there is a difference in sound insulation between the upper and lower floors. Be careful not to say, "I thought the property had high sound insulation, but I was concerned about the noise next door."
It refers to a "wall type structure" that supports a building only by the surface of the floor or ceiling without using columns and beams. It is said to have relatively low cost and high durability, and it is often seen in apartment houses such as middle- and low-rise condominiums. Due to the fact that it consists only of walls and floors, it is difficult to design a large opening, so the degree of freedom in design is low. On the other hand, since there are no pillars or beams in the room, there is an advantage that you can use the room spaciously. The strength of the wall is high and the sound insulation is perfect.
Tomorrow, we will explain the features, advantages, and disadvantages of the building structure.
Moving To Do List
Preparations for a move must be complete, starting with house hunting, selecting a moving company, and procedures for changing the certificate of residence and lifelines such as electricity, gas, and water. Check what needs to be done at what time in advance. Especially when choosing a moving company, make a request at least two weeks before your planned date of moving in order to hire a good service provider at a low price. There is also the disposal of unnecessary furniture, appliances and trash, so you will need a week to make those arrangements. The timing of garbage disposal is twice a week at most, even if it is combustible. You will also need time to transport your unwanted items to a nearby city or other disposal facility.
Here is a timeline of preparation, things to do, and timing for moving. If you don't know what to start, please take a look at this page.
Preparing for a move is all about steps and arrangements!
If you are moving for the first time, many people may not know what to do or how to start. If you arrive on the day of your move unprepared, you may end up causing problems for the movers and the people who come to help you. As the phrase "providing is preventing" suggests, even a novice mover can complete the move successfully if you are properly prepared. Use our content to set up and prepare, and have a smooth move with minimal effort!
STEP 1: Decide on a place, date and time to move.
If you have a specific destination in mind, decide on a date first. Avoid weekends, holidays, and the busy months of February to April to keep costs down. Also, you should expect to take about a month to prepare for your move, depending on the amount of luggage and procedures. Moving fees may also vary depending on the time you move. In many cases, they are divided into "morning," "afternoon," and "free" services by time of day, and some movers charge less the later in the day. Consider how long it will take to clean up after you've moved your belongings to your new home and make a plan that works for you.
[STEP 2] Get a quote and decide on a moving company.
Once you've decided on the date you want to quote, get a quote from the moving company right away! There are more and more low-cost plans available these days, so if you're planning to move on your own or have already set your sights on a company to hire, we recommend getting a quote.
Step 3: Organize your personal belongings in preparation for the move.
In many cases, procedures at the office, such as notification of moving out, can only be completed on weekdays. Therefore, if you have a job, it is advisable to take a day off or arrange for a morning off in advance to complete the procedures.
Contact your provider and cancel the contract. If you continue to use the same provider, you will be required to pay the relocation fee.
You should do this at least 3-4 days before the move. You can ask them to stop on the day you move in.
Contact the power company as soon as possible after your last day of use is fixed. You can also complete the procedures for stopping or cancelling your service via the Internet.
Contact your gas supplier to arrange for the shutdown. You should contact them as soon as your last day of use is set.
Mail forwarding service at the post office
You should apply for a service that allows you to have mail delivered to your old residence forwarded to your new residence for one year. You will need identification documents and a copy of your driver's license or resident's card or passport to verify your old address.
Change of address or cancellation of subscriptions and various other delivery services
Process a change of address for home delivery services, supplements, etc. that you purchase on a regular basis, or cancel your subscription if you want to end delivery of newspapers, etc.
Mind the day of the week for garbage disposal!
To prepare for your move, you need to start by looking for a house, select a moving company, and complete the procedures for changing your certificate of residence and lifelines such as electricity, gas, and water. Along with the procedures, you should clean up your room and dispose of the garbage.
You can reduce the amount of luggage you need to carry and in some cases, you can get money by using a collection or purchase service for your disposable items. Also, you can't just throw out bulky items right away when you want to, but you need to take the necessary steps, such as requesting a specialized company to collect them, so do your research beforehand. In addition, if you have furniture or appliances that you are replacing with new ones in your new house, ask the store to deliver them to your new house on the day you move in, when you purchase them. You should also dispose of the items you are currently using as disposable items.
[STEP 4] Pack early for an efficient move!
In addition to cleaning, you should also pack. If you have a lot of things to pack, it can increase your moving costs, so it is important to dispose of what you don't need and make sure you know where your belongings are stored so you won't get confused when you move.
1. Make a packing schedule
Start packing about a week before the move. If you pack your belongings too early, your room may be full of cardboard boxes and you won't be able to live with them. Start packing with what you don't use at the moment. Start by packing out-of-season clothing and bedding. After packing, make sure you can see what's inside without unpacking. Write "clothing", "books", "dishes", etc. on the cardboard. Most of the items that were used right before the move will be needed soon after you arrive at your new home. Put them together and put them in a cardboard box. It's also helpful to include moving tools such as cutters, scissors, gloves, and cleaning cloths.
Also, if you are moving out of a rental property, you will need to vacuum as soon as you arrive at your new home and when you move out of your old one. The vacuum cleaner should be packed last, along with other moving equipment such as tissues and cleaning cloths, and should be included with the first items to be unpacked. Also, when you move out, the trash will be the last thing to go out, so make sure you leave a few municipal designated garbage bags unpacked.
2・The floor plan of the new house and the image of the storage
On the cardboard boxes you pack, you should also write "to which room in your new house you want to take the items". For example, "children's room" for children's clothes and books, "bedroom" for linens, etc. To ensure that the movers have a smooth transition, number the rooms on the floor plan and write those numbers on the cardboard as well.
3. Pack in batches, by location
When packing, please separate the items by location. It's easy to forget about the items that are left outside.
We start on balconies and other items as soon as we begin to put them away, as we often find that we don't need them, and we may have to request collection of unwanted items or bulky waste collection. When you start cleaning up your balcony and other items, you will often find that you don't need them, and you may have to request collection of unwanted items or bulky waste collection, so start early.
Transportation of goods
If you're going to transport your belongings on the day of your arrival, you'll want to find out how to transport your furniture and appliances beforehand. Renting a car or lightweight truck
arrangements and avoid inconveniencing the people who come to help you on the day.
Convenient trunk room
There is a service called a trunk room that allows you to keep your belongings temporarily. If there are things you can't carry on the day, consider using a trunk room.
When you start moving, there is a lot to do, such as preparing duct tape and cardboard boxes, moving residence certificates and seal certificates, and so on. Because of this, it is often said that what has to be done and what remains to be done becomes complicated, and on the day of the move, some of the things that need to be done are omitted. So, prepare the following list in advance to make sure there are no omissions.
Things to do early on
Things to do a week or two before the move
Things to do before the day before you move in
What to do on moving day
What to do after the move
Furniture and Household Goods Checklist
Packing Materials Checklist
You don't get to experience a lot of moving, and the longer you live in your current home, the more stuff you'll have to move. Prepare in advance and try to organize all the tasks that you can do yourself, as well as those that you can hire a moving company to do or have a friend help you with, so that your move goes smoothly.
Continuing with yesterday's article, we're going to explain some of the points you should be aware of when visiting a property. If you are looking for a rental property, or if you are an investor and are in a position to recruit a tenant, you may also find this useful.
[Case of Building] What to check when you preview the property
Are there any equipment shortages?
The first thing to do is to check for intercoms, lights, stove, etc. If possible, test run the unit if it can be checked to see if it works. Also, carefully check the function of the water system, such as checking the water pressure in the faucet and shower. There are some types, which are often found in older apartments, where the water temperature is so cumbersome that you have to fine-tune the amount of hot and cold water every time you use the shower. It would be a shame if the water pressure in the shower is also weak. Check it out so you don't regret it later. If you are a woman, carefully check the security of the building. While the type of key (a dimple key is best) is important, it is also important to check whether or not there are places that can be used as an entry route. For example, make sure that the fence on the first floor is high enough and that there are no unauthorized access routes to the building from the back, etc. Please check the security from both a facility and environmental perspective.
Is it sound insulation?
It is also important to check the sound insulation quality of the room to see how much noise you can hear from up, down, left and right. Tapping on the walls is also useful. Please check to see if it sounds like it's stuck inside.
It's also best if you can check not only the walls, but also the floor, and preferably the ceiling as well, to see how well they are soundproofed. Be careful if you knock on the walls and find that they are hollow or only separated by plasterboard. In some cases, the sound from the next room can be heard exactly as it is.
If you have plans with you, please check the building structure as well. Reinforced concrete buildings (RC and SRC) are often excellent for sound insulation, so if you are concerned about sound, please consider it. If you are not sure, please ask the real estate agent.
Is the room tilted?
The tilt of the room can affect your health, such as headaches and dizziness. It's important to check the tilt of the room, which is difficult to see from the outside. Rolling a marble on the desk is old now, and recently there is an application that can check it on a smartphone. In fact, if it's wooden and old, some rooms may be leaning.
Even though the rent is cheap, the property itself is still pretty rickety, so make sure you check it out.
Is the delivery route wide?
You also need to consider bringing in beds, sofas and large appliances. Measure the space at the entrance, as well as the entrance, elevator and stairs if possible. It is a special case, but when you want to move a large item like a piano into a room on the second floor or higher, there are cases where it must be brought in from the balcony because it cannot be disassembled or assembled. The price will vary depending on the type of hauling, but it can range from 10,000 yen to several hundred thousand yen. Be careful not to become an unexpected expense in moving.
Check for mold.
Check your clogs and bathrooms, which are prone to moisture, as these are the points where mold can occur. It is easy to forget about the Japanese style closet and the back of the closet, so make sure to check these areas. The moment you open a storage door, be careful if you smell moldy. Your clothes, bags, and shoes may have been damaged by mold.
The ventilation fan, which also serves to release moisture, is a good place to check. If you think the ventilation fan is noisy, it may have been installed long past its useful life. Consult the real estate agent to see if they will replace the fan.
Do you notice any dirt or scratches?
Stains on the wallpaper and scratches on the flooring are things you want to check in advance. It may be difficult to look at them in detail when you preview the room, but it is a good idea to check them before you sign the lease. If there are areas of concern, take pictures of them and discuss them with the management company in advance. It is important to take the necessary precautions to avoid having your security deposit returned when you move out.
How's the cell phone signal?
It can be easily affected by the structure of the property and its location in relation to the surrounding buildings. You should check the signal reception everywhere you go. In general, it is easier to get reception in wooden buildings and harder to get reception in reinforced concrete buildings. If you have trouble getting a signal, major cell phone carriers can lend you a home antenna, so please consult with them.
Is the number and location of outlets appropriate?
This is especially important if you have a home with many appliances. In addition to the electrical outlets, make sure you have details on your drawings of where the TV antenna wires and the phone wires are located. Imagine your life and think about where you want the electrical outlets to be located, whether they are around the sink or where you want to place the TV, and so on.
Do you sense any trouble with the residents?
The person viewing the property is, as it were, a first-time visitor to the property. Because it is your first visit, it is very important to follow up on any missing information. At times like these, the bulletin boards set up at the entrance and in each area are helpful.
You can imagine what kind of problems are likely to occur based on the content of the warning signs about garbage disposal and noise. General notices are fine, but if they are specific, such as "Neighbors complain about noise after 10:00 p.m.," "Do not leave your personal belongings, such as bicycles, in the common corridor," or "Please obey the garbage disposal rules," you need to be careful.
[Case of Surrounding Environment] What to check when you preview the property
It is not only the building that determines the quality of the property. How well-developed and equipped the surrounding environment is also an important criterion. Take a little time to walk around and look around.
Are convenience stores and supermarkets nearby?
Make sure to check the location of convenience stores and supermarkets, which are essential to your daily life. Also, don't forget to check the opening hours. Although the day of the preview may be difficult, it is a good idea to check the store's product line and price quotes if possible.
Is the security level high?
It is important to get a feel for the atmosphere of the place by going to the site to see if it is safe. It's easy to stare at the drawings while traveling to the property, but check to see if there are streetlights and if there are many people on the street. Once again, it is useful to visit at night and actually walk your route home. During the day, the street may have a great view, but at night the streetlights may be dark and scary.
Are there any noise sources nearby?
It is important to know if there are any facilities nearby that generate loud noise, such as pachinko parlors, or if there is too much traffic on the main road. Heavy traffic on a main road is directly related to noise. Depending on the time of day, the road may be quiet, so you should also be aware of what the road will be used for. Otherwise, if there is a hospital or fire station nearby, you will need to consider the access of emergency vehicles.
How convenient is the transportation system?
Walking time to the nearest station is important, but some properties may require you to ride a bicycle or take a bus. If it's a bus, you should also check the destination and number of bus stops, and if it's a bicycle, you should also check the location, cost and current availability of bicycle parking near the station. The "walking time" shown on the drawing is based on one minute per 80 meters and does not take into account stopping at traffic lights. When looking at several housings, there are many cases where a real estate company will show you around by car, etc., but if possible, please try to confirm the time required from the station by your own feet.
We've given you some key points to consider here, focusing on the date of your preview, but there are actually many things you can check in advance. With a rental information site, you can look up a map of the area, search for the location of supermarkets and hospitals, and check the facilities and traffic on the bus routes as well as the crime rate. Since you are looking for a new house, it is ideal to be able to have fun while looking for a place to live. Prepare well in advance and find the room that's perfect for you!
Be sure to check the surrounding area! Checkpoints for real estate tours
When renting a property, one thing you can't avoid is a preview of the property. Before you sign the lease, you will need to visit the actual property to check it out. However, since you will be viewing the property for the first time in a short period of time, you want to make sure you get the most out of it. In order to get a clear picture of your new life ahead, it is important to know what to check out about the property and the surrounding environment.
What is a preview to begin with?
A preview of the room (preview) means "to see the inside of the room". When you see a room you are interested in on a rental information website or at a real estate agency, you do not immediately sign a lease contract. It means the entire process of actually visiting the room and checking it out in detail. Although there are some properties which cannot be viewed, there are many cases where the real estate agency will provide you with an opportunity to view the room in some way or another, and it is unlikely that you will be able to view the room and sign the lease without being able to do so. In other words, you could say that a preview is an essential event for a rental contract.
● If the tenant is still occupying the property and cannot be viewed.
- You can preview similar rooms (vacancies in the same building).
● If the building is not yet complete (e.g., a new building)
- Agent can show you the showroom and head to the site to show you the property under construction.
So what are the key points to look for when previewing a property? Let's take a look at each of these points to get a more efficient preview of the property.
[Case of Building] What to check when you preview the property
Check the property from various angles, including living, delivery, and facility functioning. Check every aspect of the property to avoid regrets later. It depends on how many properties you see that day, but you'll probably have a few dozen minutes to view them. Let's take a look at the checkpoints you want to keep in mind when you have a limited amount of time for a preview.
Is there enough sunshine?
You can get an idea of the approximate direction of a room in terms of sunlight from a drawing, but it's hard to tell how much sunlight is coming in or how bright it is. Sunlight is an important factor that affects not only the brightness of the room but also the place to hang your laundry. Check the position of the building and the adjacent buildings to confirm the sunshine. There may be times when you expect sunshine because the drawing faces south, but the building is right in front of you and the sun doesn't get in. Note that in some cases, properties with a young age are so airtight that it's actually not a problem even if the living room doesn't get any sun. With an airtight property, you won't find it too cold to live in a north-facing room in the winter. In some cases, it is actually more important to be airtight to keep the heat from escaping, so ask about airtightness if the sun exposure is not good.
Is the floor plan and space large enough for furniture?
When you preview a room, it feels larger than it really is because it doesn't have a set of household items. For example, if you measure the size of the bed in advance and simulate the room, you can reduce the discrepancy between the space you feel when you preview the room and the actual living space. To determine if the size of the room is appropriate, imagine what it would look like with large furniture such as a sofa, TV stand, bookshelf, desk, and bed in place.
You don't mind the smell?
Although we tend to rely only on sight (such as the floor plan) and hearing (such as noise) in preview, don't forget to use your full sense of smell. In addition to the smell of sewage and septic tanks and other water sources, the smell of tobacco from previous residents can sometimes be bothersome. In many cases, the real estate company will get away with it by saying that the odor has not been eliminated because it was not yet cleaned, or that the odor can be removed in time, but there are some odors that cannot be removed by room cleaning. Be sure to confirm this beforehand. Other places you should be wary of are restaurants. For example, if there is a restaurant that smells of spices in the neighborhood, the smell may be present all year round. If there are restaurants in the property, take a look at the property during their opening hours.
Check for rattles around windows and doors.
Make sure that the windows, doors and other fittings are properly moved and checked. If they are not moving properly, make sure that you can have them repaired before you move in. Buildings near the railroad tracks may have double sashes. This will reduce the noise level in many cases. On the other hand, if your apartment is not equipped with double sashes, you may have a sound problem. It is a good idea to ask if you can have them replaced.
This is going to be a bit long, so we'll continue tomorrow. In our case, we do building management for rental properties, but we do get tours of the actual properties through different agents. If you are interested in any of the rental properties listed on our website, please contact us for more information.
What is the risk of lessee and market?
We explained that the rent income from real estate involves four risks: vacancy, early cancellation, rent decline, and delinquency. This time, we will explain what kind of risks are involved in terms of the lessee's attributes, type, and market.
Relationship between lessee attributes and risk
The tenant attributes of real estate for rent can be broadly classified into three categories: “residential”, “office”, and “store”. In real estate investment, the magnitude of risk varies depending on the lessee's attributes. We will explain the risks associated with attributes from the perspective of stable income.
The above is a general comparison that does not take individual circumstances into consideration. Stores and offices are subject to the risks of withdrawal and relocation, depending on location conditions and economic conditions. In addition, if there are vacancies, we must search for a store or company that meets the conditions, taking into consideration the location and other factors. Therefore, it can generally take some time to secure a new tenant. Naturally, residences are affected by location and economy, and there is a risk of vacancy, but since it is essential as a home of life, new lessee can be found unless rent conditions such as rent are set unreasonably. The cycle of finding new tenant is generally shorter than in offices and stores. From this point of view, by the stability of rent income, it can be said that the risk of residential is lower than stores and offices.
Relationship between type of lessee and risk
As mentioned above, the risk of income differs depending on the lessee's attributes, but in addition, the risk level also changes depending on the “business type”, “scale” and “quality” of the lessee in each attribute.
Again, this is just a general idea, and of course it depends on the individual case. As for offices, it is important to consider how the company is generating stable income and the occupation where stable income can be obtained. In terms of stores, restaurants are generally said to be at higher risk from the perspective of fire risk. In this way, the risk varies depending on the attributes and quality of the lessee. In other words, cultivate a sense of risk by imagining the possibility of obtaining stable income and the different probabilities.
Supply and demand and risk of real estate for rent (Condominiums for sale also become competitors)
If the rent obtained from the investment target real estate is higher than the market price in the neighborhood, there is a high possibility that the rent will have to be reduced at the same level as the market price at the timing of contract renewal or replacement of the borrower. Therefore, even if the yield at the time of property purchase is high, the rent may be reduced in the future due to replacement of the lessee or negotiations for rent reduction, etc., and as a result, the yield may decrease.
Number of rental units and risk (the more rental units, the smaller the risk)
The degree of risk also changes depending on the number of real estate units you invest. If the number of rented units is large, the ratio of one rent to the total rent is small, so even if one vacant unit is vacant, the impact on rent income will be small. Conversely, if the number of rented units is small, the ratio of one rent to the total rent will be large, so if vacant, the impact on rent income will be large. In other words, the impact of vacancy per unit increases as the number of rental units decreases, and the impact decreases as the number of units increases. As shown in the table below, even if the investment amount and the yield are both the same, the income and yield when there are vacant rooms will differ due to the difference in the number of rental units.
We explained the risk related to income in two times, the last time and this time, but it does not mean that the risk is bad because it is high or low. If the risk is high, you can buy cheaply and get a high yield accordingly. In addition, if the risk is low, the yield will inevitably be low, so you may not be able to expect high profits, but stable operation may be possible. First of all, it is important to understand the risks and develop a sense and image that you can make an investment commensurate with the risks.
When investing in real estate, it is important to understand the intuition of the land, the unique circumstances of the real estate, demand, and major trends. However, starting with a small investment and gradually increasing it, you will be able to accumulate know-how and select the appropriate property from various investment targets. We also accept questions related to investment, so please feel free to contact us.
What is the risk of rent income?
Real estate investment is often very large compared to stock investment. If you succeed, you will get a stable profit, but if you fail, you will regularly lose. Therefore, if you do not fully understand the characteristics and risks of real estate, you cannot make a successful investment. So what are the specific risks involved in real estate investment? This time we will discuss the risks associated with income from real estate.
Vacancy risk (vacancy is negative, not zero income)
The main source of income from real estate investment is the monthly rent income earned by lessee (residents, tenants) by renting real estate. Therefore, if lessee moves out for some reason, owner will not be able to earn rent income until owner finds a new lessee. Moreover, as a property of real estate, management costs, property taxes, city planning taxes, and other expenses are incurred regardless of whether there is a lessee or not. Therefore, if rent income does not come in due to vacancy, the balance will be not zero, but negative. For example, if six months of the year are vacant and you cannot get rent, the rent income will of course be halved, but expenses will be incurred throughout the year, so the actual income and yield will be less than half.
Early termination system advantageous to Lessee
When entering into a lease agreement between the lessor and the lessee, the contract period is usually set for 2 to 3 years. However, even during the term of the contract, it is possible to cancel the contract in advance, excluding special contract types, by prior notice from the lessee (6 months to 1 month). In other words, for the lessor, the contract period specified in the lease contract is only expected to earn rent income, and even during the contract period, there is always the risk of being canceled early (vacant).
When land prices, commodity prices, and rents were rising, it was called the “lender market” and it was relatively easy to secure a new tenants even when there were vacancies. Also, at that time, land prices and rents were on the rise, so in some cases owners were able to rent under conditions that were more favorable than previous rents. In addition, key money and other lump-sum payments can also be received, so the early cancellation by the lessee was not a major issue. However, with the increase in the supply of rental properties, the number of vacancies has increased, and the polarization of land prices and rents is now remarkable, and it is called the “borrower market”, it's becoming a serious problem for the lessor whether or not a new lessee can be secured promptly after the tenant moves out, and whether the lessee can pay at the previous rent level. In the current “borrower market”, stable income cannot be obtained unless the next step is taken promptly when it becomes clear that the lessee has terminated early or has terminated.
Risk associated with falling rent
If the rent obtained from the real estate to be invested is higher than the market price in the neighborhood, there is a high possibility that you will be forced to reduce the rent at the same level as the neighboring market at the time of contract renewal or when the lessee is replaced. Therefore, even if the yield at the time of purchasing a property is high, the rent may be reduced in the future due to the replacement of the lessee, negotiations for reducing the rent, etc., and as a result, the yield may decrease.
Risk of rent arrearage (rent arrearage are harder to handle than vacancies)
Even if the lessee has already been secured and there is no concern about vacancy for a while, but there is a risk of the rent will not be paid as planned due to the economical situation of the borrower and individual circumstances, etc. If the rent is overdue, a reminder to the lessee and a reminder to the guarantor will be required. In addition, if you request a real estate agent or lawyer to do business for moving out due to demand for rent, collection, or nonpayment of rent, there will be a charge. Thus, in addition to the effort and expense involved in paying rent in arrears, you may suffer even more damage than if the property were vacant, since you will not be able to secure a new tenant and generate income in the meantime. Even if the eviction is established, it is not known whether the rent for non-payment can be recovered or not.
Therefore, if you are investing in real estate, you will need to conduct a thorough investigation into the creditworthiness of guarantor as well as the creditworthiness of the lessee. It is desirable to investigate the lessee's past arrears history when buying the real estate that is already in lease.
Investing involves risk, and there is no investment product without risk. In real estate investment, a thorough understanding of the characteristics of these risks will determine the success or failure of your investment. In addition, the various risks associated with rental income discussed in this article can be mitigated to some extent through your own efforts, ingenuity and judgment. We will discuss ways to mitigate these risks in the next section.
What is the reserve fund for repair of condominiums? Will there be a price increase in the future?
Mortgages aren't the only things you pay monthly after you buy an apartment. After purchase, you will also have to pay a management fee and a reserve for repairs. Moreover, the reserve fund for repairs may be raised, so once it is decided, it will not end. Therefore, in this article, we will explain what the repair fund is used for, and then introduce the market price of the repair fund and the reason why the price increases.
What is a reserve fund for repair?
In the case of a condominium, you have to pay a management fee and a reserve fund for repair in addition to the mortgage each month after purchase. Briefly, the management fee is a monthly fee paid by the resident to the management company for the daily management of common areas. The reserve fund for repairs is for the tenants to save the expenses through the management association in preparation for the maintenance and repair of the condominiums 10 to 20 years in advance. Please refer to the table below for each main use.
Accumulation based on a "long-term repair plan" that leads to the property of condominiums
To explain in more detail about reserve fund for repair, in order to carry out the necessary repairs (maintenance of outer walls, repairs of common areas, etc.) to maintain the condominium over a long period of time, it is different from the management cost. In accounting, the thing to be saved is called reserve fund for repair.
What is the market price of the reserve fund for repairs?
Actually, how much is the market price to pay for the monthly reserve fund for repair?
According to the 2013 version of the “Condominium Comprehensive Survey” that the Ministry of Land, Infrastructure, Transport and Tourism regularly surveys, the average management cost in 2013 was 10,661 yen per month, and the average amount of reserves for repairs was monthly 17,83 yen. In other words, in addition to the loan repayment amount, you can see that there is an average monthly burden of ¥21,444. By the way, looking at the market price of reserve funds for the 1999 version (1999), the average amount of reserve funds for repairs in 1999 was 7,378 yen. In other words, you can see that the price has risen by more than 30% in the last 15 years.
The reason for the price increase
So why has the price so much increased in 15 years? When repairing condominiums, it is important to perform appropriate repair work in a timely manner in response to deterioration over time of the building. To that end, it is essential to accurately create the aforementioned long-term repair plan and set the amount of reserve for repairs based on it. However, in the past, there was no guideline on how to formulate a long-term repair plan. Therefore, the Ministry of Land, Infrastructure, Transport and Tourism formulated it in 2008. Therefore, the long-term repair plan was reviewed accordingly, and the reserve for repairs was calculated again. In other words, the proper amount of money is being collected.
Repair fund is not the same amount every year
The amount of the reserve fund for repairs is the same every month every year, but that is not the case. It may be worth noting that in some cases it may increase over time. It seems that the longer the building age is, the more likely it is that the reserve fund will increase. When carrying out large-scale repairs, the reserve for repairs is often reviewed as a result of estimating repairs. Large-scale repairs are generally done every 10 to 15 years.
The Ministry of Land, Infrastructure, Transport and Tourism's "Manual on Reconstruction Techniques for Condominiums by Renovation" shows an example of every 12 years, but even in that case, the reserve fund for repairs will be reviewed during large-scale repairs. It may be helpful to refer to it when purchasing.
5 Reasons Why Repair Reserve Funds Go Up
Let's take a closer look at why reserve fund for repair might go up.
The initial set amount is low
The first reason is that the initial amount of reserves for repairs at the time of sale is low. Especially in the case of second-hand condominiums before the creation of the guidelines, it is highly possible that the initial set price is set lower than the appropriate amount, and as a result, the price will rise in the future.
Step-up accumulation method with fixed price increase
The second is when raising the reserve fund for repair price is a fixed collection method. There are two reserve fund reserve methods: the "equal fund reserve method" and the "staged increase fund reserve method." The equal fund method is a method of dividing required repair money by the planning period and paying the same amount every month. Therefore, the reserve fund for repairs will not change during the period. However, many condominiums use the latter method of gradually increasing reserves, and the reserve fund gradually increases in price. It is important to check carefully as you will be informed of the payment at the time of purchase.
Market prices for repairs are rising
The third is when the market for repair costs rises and the reserve fund for repairs rises accordingly. There is a concern that the workforce will decrease due to the aging of the population, and there will be a shortage of labor for construction workers, and such a shortage of labor will lead to soaring labor costs, resulting in higher repair costs.
Implementation of large-scale repairs not originally planned
Fourth, there are large-scale repairs that are not planned. When the building age has passed, the equipment, etc. will become old, so it is necessary to carry out large-scale repairs. Barrier-free construction and upgrade construction are not included in the long-term repair plan, and there is no reserve fund, so owners have no choice but to raise the price.
Fifth, the cost is high because owners left everything to the management company. As a result of these factors, the fund for funded reserves continues to rise.
Timing of price increase
Now that we know the reason for the price increase, we would like to touch on the timing of price increases. The timing of price increase basically depends on which method is used to accumulate. It seems that the timing for raising the price with the equal fund reserve method is often after the completion of large-scale repairs. It can be predicted that the cost was higher than the estimate at the time of planning. In case of staged increase fund reserve method, the timing of price increase comes every few years. It is necessary for owners to be informed of this when you purchase the condominium and schedule it yourself.
When purchasing a condominium, understanding the significance of the reserve fund for repairs and why the price will rise will change the criteria for choosing a condominium. Check whether the amount of the reserve for repairs will increase significantly or moderately, check the age of the building, and prepare in advance.
Please contact us for consultation on purchasing or selling real estate.
Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement)
Suppose you made a purchase of a vacant house by investing in real estate. The real estate needs to be newly rented. Generally, a management company is selected to assess rent, determine conditions, and start a new rental application. The first thing we would like owner to consider in the rental application is to decide how you plan to use the real estate in the future. There are two types of lease contracts. For example, if you do not plan to live in the future and intend to continue lending, you will have a regular rental agreement (ordinary lease contract). Or, if you intend to return and live someday, if you want to make sure that the renter moves out, a lease agreement（fixed term building lease agreement） that ensures the end of the contract is an option.
Today, we will explain about Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement).
Differences from types of lease agreements
How do you want to rent your real estate? Even with the contract method, each has its advantages and disadvantages. It is important to make a decision after considering the characteristics and circumstances of each property. When deciding the contract period, you need to understand the “Regular Rental Agreement” and the Lease Agreement (Fixed Term Building Lease Agreement). There are differences between the two not only in the contract period but also in cancellation, and each has its own characteristics.
Cancellation from the Owner
Possibility of Early Termination from the Lessee
*Fair Reason is limited to situations where there is an unavoidable social common sense, such as when a building has been obsolete and has to be rebuilt.
*You cannot change the contract type during the lease term.
The above is the difference between Regular Rental Agreement and Lease Agreement (Fixed Term Building Lease Agreement). If you want to use your own building in the future when renting, it is effective to select Lease Agreement (Fixed Term Building Lease Agreement). However, looking at the percentage of contracts, Regular Rental Agreement occupies 97.5% and Lease Agreement (Fixed Term Building Lease Agreement) is only 2.3%. Lease Agreement (Fixed Term Building Lease Agreement) is an unfamiliar contract type and there is a possibility that you may be refused to use it.
If you choose Lease Agreement (Fixed Term Building Lease Agreement), you can guarantee the initial contract for 2 years, the renewal contract for 2 times, and the total lease period of 6 years. It is also an effective way for the tenant to apply for the contract under conditions that make it easy to sign the contract.
If you are considering a real estate investment, please feel free to contact us for rent recruitment and management methods.
Terms and interpretations commonly used in the real estate industry
Usually used in the real estate industry, it is used as a matter of course or it is a business practice, and we will explain in a Q & A format such as words and ideas that are not familiar to the general public.
Q - What is the standard for walking time from stations?
A - Every 80 meters of road distance is converted to approximately 1 minute, and fractions less than 1 minute are rounded up to 1 minute and displayed.
Q - How should the unit of width be viewed?
A - 1 tsubo = 2 tatami mats (Jo) ≒ 3.3 square meters.
It's a good idea to keep this in mind because you often make calculations such as square meters × 0.3025 = ○ tsubo.
Q - What is the meaning of the symbols displayed on the floor plan?
A - The meanings of the typical symbols displayed in the floor plan are as follows.
L → Living
D → Dining
K → Kitchen
S → Service room
PS → Pipe space (drain and drinking pipes)
UB → Unit Bus (Japanese English, meaning of modular bath)
MB → Meter box (gas, water or electricity meters are installed)
Q - The floor plan often says "S" Service room. What kind of room is it?
A - Service room as "Nando" means a room with 3 tatami mats or less, or a room without windows. This is in accordance with the Building Standards Acts, which does not recognize a windowless room as a living room. There are some rooms that are treated as service rooms because there are no windows even if they are more than 8 tatami mats.
Q - It is often called the unit price per tsubo, but how do you put it out?
A - The result of dividing the sales price by the number of Tsubo (area) of the property.
If the trading price is 25 million yen and the area is 50 square meters, it will be as follows.
25,000,000 yen ÷ 50 square meters = 500,000 yen (per square meter)
500,000 yen x 3.3 square meters = 1,650,000 yen (per tsubo) ⇒ unit price per tsubo
Q - I want to buy only the land and build the building in the future, but can't it be the land with construction conditions?
A - When a homebuilder sells land, it is called land with construction conditions. This is a land sales form, subject to a contract for building construction within a certain period (3 months). The contract type is a sales contract for land and a construction contract for buildings. If the building contract is not concluded within 3 months after the land purchase contract, the land purchase contract will be blank and all the money paid will be refunded. Therefore, in the case of land with construction conditions, it is not possible to purchase only the land. However, please be aware that some advertisements may look like advertisements for newly built homes, such as posting a large example of a building plan (floor plan).
Q - Is there a consumption tax on the purchase of real estate?
A - When buying a used home, it can be divided into a case where the seller is a corporation and a case where the seller is a general individual. If the seller is a corporation, the house will be a commodity and will be subject to consumption tax. However, in most cases, the tax is included, so the tax will be included. If the seller is a general individual, it will not be taxed as it is not a product referred to in the consumption tax law.
In addition, the purchase and sale of land is not a target of consumption in the first place, and the transfer is considered to be a simple transfer of capital. Whether the seller is a corporation or an individual, the tax is exempt under the consumption tax law.
Arrows International Realty Corp.